TMI BlogHotel IndustryX X X X Extracts X X X X X X X X Extracts X X X X ..... Hello Sir, I have two queries 1. Whether service tax applicable on dine in or dine out service in hotel. 2. What is Bundle services. We are selling room with breakfast fascility. Should be paid service tax under accomodation service@ 7.61 or in Bundle service @ 8.65. Thanks, - Reply By Tanvi Aggarwal - The Reply = Dear Sir, On Dine In service the service tax will be on 40% of the total amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. However, in case of Dine Out it seems that no service element is present, therefore, no service tax need to charged. But practically, most of the restaurants are charging the same Bundled service means a bundle of provision of various services wherein an element of provision of one service is combined with an element or elements of provision of any other service or services. See: Clarific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation regarding changes made or proposed in Budget 2012-2013 - Dated 16-3-2012 - Service Tax Practically, in these days, Bundled services have no relevance after introduction of negative list. Only for administrative purposes; i.e. for making payment and filing of return, category of service need to be defined. In your case, you can charge service tax @ 8.65% as bundled service tax till 31st M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay 2015. However, w.e.f 1st June 2015 service tax on bundled services will be 9.8%. - Reply By LILADHAR AGRAWAL - The Reply = Hello Tanvi, Thanks for your advise. I know practically hotels are charging service tax on dine out also. I wants to know whether it is defined in law somewhere or under litigation now. If under litigation so I would like to charge service tax for safe side. Regarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bundle service, If we see from the point if view of tax planning, Can we raise two seperate invoice one for accomodation (7.65%) and one for restaurant service (4.94%) rather than charging 8.65%. If yes then is there any clarification how we'll calculate the value of room service and breakfast service. Once again thanks for your advise. - Reply By Tanvi Aggarwal - The Reply = Dear Sir, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n my opinion, there is no specific clarification by government regarding service tax element on take-away food orders. Regarding Bundle service, in my opinion you cannot raise separate invoices. Because after raising separate invoices the service will be no more a bundled service . For more details please refer Section 66F of Finance Act, 1994. - Hotel Industry - Query Started By: - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LILADHAR AGRAWAL Dated:- 27-5-2015 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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